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LOG200 Intermediate Acquisition Logistics Lesson 24 - Evaluate Product Support Capabilities - Management Process RESOURCES 1 PRINT 1 HELP

Welcome to Management Process

As a life cycle logistician LCL) you must understand management process a nd what is expected of you on each project This topic will cover processes such as Analysis of Alternativ es AoA) and System Operational Effectiveness SOE) and the LCLs role in them

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Objectives

After finishing Management Processes you will be able to

bull Identify the LCLs role in the development of Analysis of Alternatives (AoA)

bull Identify the LCLs role in Affordable System Operational Effectiveness (SOE)

bull Identify the LCLs role in market research and how it is a valuable tool

bull Recognize commercial support benefits to the DoD and how they are assessed

This lesson presents you with the LCLs role in the management process associated with evaluating product support capabilities

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Analysis of Support Alternatives

The analysis of support alternatives is an essential element of the overall Analysis of Alternatives (AoA) that is conducted during the Materiel Solution Analysis phase AoAs may also be conducted in other phases due to changes to threats costs or technology The purpose of the AoA is to provide an analytical comparison of the operational effectiveness and cost of proposed materiel solutions to shortfalls in operational capability AoAs document the rationale for identi fying and recommending a preferred materiel solution

An AoA is the evaluation of the performance operational effectiveness operational suitabili ty and estimated costs of alternative systems being considered to meet a mission capabili ty T he AoA assesses the advantages and disadvantages of alternatives being considered to satisfy capabilities including the sensitivity of each alternative to possible changes in key assumptions or variables The AoA is one of the key inputs to defining the systems capabilities in the capability Development Document (COD)

Select each term below to read its definition

bull Opera tionaI Effectiveness

bull Operational Syjtabili ty

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Operational Effectiveness

ldquoMeasure of the overall ability to accomplish a mission when used by representative personnel in the environment planned or expected for operational employment of the system considering organization doctrine supportability survivability vulnerability and threatrdquo

Operational Suitability

ldquoThe degree to which a system can be placed and sustained satisfactorily in field use with consideration given to availability compatibility transportability interoperability reliability wartime usage rates maintainability environmental safety and occupational health human factors habitability manpower logistics supportability natural environment effects and impacts documentation and training requirementsrdquo

LOG200 Intermediate Acquisition Logistics Lesson 24- Evaluate Product Support Capabilities- Management Process RESOURCES 1 PRIMT 1 HELP

Analysis of Alternatives (AoA)

The AoA is an important element of the defense acquisition process An AoA is an analy tical comparison of the operational effectiveness suitability and life- c ycle cost of alternatives that satisfy established capabili ty needs After the Materiel Development Decision the AoA is initiated to examine potential materiel solutions with the goal of identifying the most promising end -state materiel solution thereby guiding activities of the Materiel Solution Analysis phase Additionally the AoA is

bull Required of all major defense acquisition programs

bull Incorporates policy and guidance provided by the Office of the Director Program Assessment and Cost Evaluation

bull Contributes to the selection of a preferred materiel solution that satisfies the capabili ty need documented in the approved I nitial Capabilities Document ( l CD)

bull Assesses critical technologies including technology availability maturity and risk

bull Provides the basis for the Technical Development Strategy at Milestone A and information for DoD leaders to debate and assess a potential programs capabili ty and affordability

bull Emphasizes innovation and competition

bull Justifies the rationale for formal initiation of an acquisition program at Milestone B

bull Establishes acceptable boundaries of risk and a baseline analysis that may provide a foundation for subsequent business case analysis

bull Describes and includes the results of the supportability analyses and trade- offs conducted to determine the optimum support concept as part of the preferred system concept I t should also include the assumptions used in the analyses

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Analysis of Alternatives (AoA) Cont

For more comprehensive information the Air Force Office of Aerospace Studies has published an AoA Handbook and assessment guidelines that may be found at the DAU Acquisition Community Connec tion (ACCl website Additionally Chapter 3 o f the De fense Acquisition Guidebook COAGl contains information on the AoA

Additional information on the results of an AoA can be reviewed in this RAND article

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Ground Rules

Ground rules must be defined for scenarios threats environment and constraints assumptions

Alternatives

Alternatives may include

bull Retaining one or more existing systems representing a benchmark of current capability bull Major upgrades or service-life extensions to existing systems bull Alternatives directed by AoA reviews bull A description and rationale for some alternatives that are nonviable

Concepts

Concepts addressed include those for operations and support

Measures

Measures addressed include

bull Mission tasks bull Measures of effectiveness bull Measures of performance

Analysis

Analysis includes effectiveness life cycle cost and cost-effective comparisons


AoA Organizational Approach

Responsibili ty for the AoA is assigned to an AoA study team and not the program office The program office may provide assistance and data to the working team that conducts the AoA In some cases a federally funded research and development center may be assigned the AoA The AoA study team is staffed with a diverse mix of military civilian and contractor personnel

The AoA Study Team is usually organized along functional lines into panels with a chair for each

bull Effectiveness Analysis Panel

bull Threats and Scenarios Panel

bull Technology and Alternatives Panel ( responsible for defining the alternatives )

bull Operations Concepts Panel ( for each alternative )

bull Cost Analysis Panel

In most cases the effectiveness analysis panel occupies the central position and integrates the work of the others

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AoA and Product Support Responsibilities

Recall that the purpose of the Materiel Solution Analysis phase is to assess potential materiel solutions and develop a T echnology Development Strategy (TDS ) This includes identifying and evaluating affordable product support alternatives with their associated requirements to meet the operational requirements and associated risks T he activities in this phase are critical to acquisition program success and achieving materiel readiness Why

T his is the first opportunity to influence supportability and affordability by balancing technology opportunities with operational and sustainment requirements I n determining the optimally balanced requirements emphasis is not only on the reliability and maintainability of potential materiel solutions but also on assessing cost- effective responsiveness and the relevance of support system and supply chain alternatives

In other words this is the first chance to identify cost schedule performance and supportability considerations that represent the trade space available to the PM

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AoA and LCL Responsibilities

From this perspective the AoA is a key activity during the Materiel Solution Analysis phase The LCL plays a critical role in the AoA by identifying and defining possible maintenance and sustainment concepts - product support solutions - to evaluate These alternative approaches to product support must be consistent with the concept of operations including the physical and operational environment of the systems being evaluated To accomplish this the LCLs responsibilities include

bull Clearly specifying the support concept and support performance of the -baseline or current capabili ty

bull Defining and analyzing support concepts for each alternative under consideration to include performance based support options

bull Assessing the physical and operational maintenance environment of each alternative under consideration

bull Determining the system level sustainment metrics and values that provide the balance between mission effectiveness life c ycle cost logistics footprint and risk for each system alternative and associated sustainment and maintenance strategy

bull Understanding and assessing the implications of an evolutionary capabili ty to supportability



AoA and LCL Responsibilities Cont

AdditionaiLCL responsibilities when c onducting an AoA are

bull Clearly specifying the ground rules and assumptions for the assessment of effec tiveness and cost of life cycle support

bull Identifying and assessing best product supportlogistics practices from other defense programs and the commercial sector

bull Clearly delinea ting the potential risks in support performance for each materiel alternative and associated support concept under considera tion

bull Estimating the support costs as an element of li fe cycle costs for each of the system alternatives to include design development production and sustainment costs associated with implementing each support concept

bull Working with the modeling a nd simulation community to identify and use appropriate supportability models for estimating support risks and costs for various alternatives

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AoA Support Concepts

In the AoA each alternative under consideration may have more than one p otential support concept or alternative that could be assessed Th e following are examples o f how alternatives could be defined

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Alternative One

Existing system(s) providing current capability supported by DoDrsquos current logistics support concept

Alternative Two

An upgrade to existing system with a combination of existing logistics support and performance-based logistics support

Alternative Three

A new materiel solution with DoD serving as the product support integrator providing performance-based logistics support

Alternative Four

A new materiel solution with the prime system integrator serving as the product support integrator providing performance-based logistics support

Alternative Five

Evolutionary materiel solution with continual trade-off analysis to determine the most effective and affordable performance-based logistics support


Knowledge Review

Alternative 3 is a new materiel solution with DoD serving as the product support integrator providing performance-based logistics support

~ True

U False

Check Answer

The statement is tru e Alternative 3 is a new materiel solution with DoD serving as the product support in tegrator providing performance-based logistics support

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Knowledge Review

Which alternative is a new mat eriel solution with DoD serving as the product support integrator providing performance-based logistics support

AIterna tive One

AI ternative Two

~ Alterna tive Three

Alternative Four

Alternative Five

Check Answer

Alternative Three is a new ma teriel solution with DoD serving as the product support in tegrator providing performance-based logistics support

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Effectiveness Analysis

Effectiveness analysis in the AoA is based on three levels of factors

1 Mission tasks -- derived from mission needs

2 Measures of effectiveness -- describing how well the mission tasks are performed

3 Measures of performance - describing functional capabilit ies

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Mission Tasks for Pr oduct Support

The LCL focuses efforts on the mission tasks that require product support capabilities For example these factors may be related to support

Mission Task 1 Provide agile responsive war fighting capability (as it relates to the capability shortfall)

bull Measures of effec tiveness deployed logistics support manpower deployed test and support equipment deployed spares design reliabili ty

bull Measures of performance operational availabili ty mission reliability logis tics footprint

Mission Task 2 Provide real- time logist ics knowledge to operational commanders

bull Measures of effectiveness number of systems sub-systems covered by diagnostics number of systems sub-systems covered by prognostics

bull Measures of performance percent of fault isolation by diagnosticsprognostics percen t of faul t detection by diagnos tic s prognostics accuracy of predicted mission -ready systems

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Importance of Sensitivity Analysis

Some of the ground rules assumptions and estimates of performance in an AoA especially during the Materiel Solution Analysis Phase may be subject to error Typically a few critical assumptions drive the results of the analysis If a change in a variable or assumption changes the ranking of the effec tiveness andor cost of the various alterna tives then the results are sensitive to that fac tor The sensitivity analysis provides a level of assurance that the uncertainties in the analysis have been documented and assessed A sensitivity analysis must be performed for bo th e ffec tiveness and cos t

Assumptions and variables that may create sensitivi ty to support alternatives may include

bull The estimates associated with the reliability for the proposed materiel solutions

bull The DoD logistics manpower requirements bull The assumptions related to diminishing manufacturing

sources for the life cycle bull The cost of prognosticsdiagnostics bull Assumptions regarding competition bull Assumptions regarding the acquisition o f technical data

andor spares

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Assessing Affordability

The AoA must also assess the life cycle cost of each alternative -- how much the capability solution will cost to develop produce operate and retire

Some alternative solutions may have more than one support option In those instances one alternative could have two different costs depending upon the support alternative Select each i tem below to read about examples of support- related cos t factors that need to be considered when assessing affordabili ty

Integrated product support

Segmented performance- based support

Supportabjljtv factors that may affect upfront desjgn and production costs

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Integrated Product Support

bull Dollar per operating hour based on industry performance-based support bull Cost of a product support integrator (DoD or industry) service bull Cost of DoD management to include contracting of the integrated product support effort bull Cost of potential incentives shared savings initiatives

Segmented Performance-Based Support

bull Cost of spares bull Cost of supply management bull Cost of repairs bull Cost of sustaining engineering bull Cost of DoD management to include contracting

Supportability Factors That May Affect Upfront Design and Production Costs

bull Some supportability factors that may impact upfront design and production costs bull Reliability ndash some alternatives may require redundancy or more costly material to obtain higher

reliability bull Maintainability ndash some alternatives due to technology may require more costly test equipment

andor training bull Built-in diagnosticsprognostics ndash some alternatives may require more development than others to

incorporate reliable diagnostics bull Real-time networked weapon system information ndash capability requirements for logistics C2 andor

joint logistics


Reducing the Number of Alternatives

The comparison of alternatives typically reduces the original set of alternatives to a small set of viable alternatives for decision makers to consider In most cases the alternatives will have different effectiveness and cost In some cases the alternatives may have equal cost and be assessed based on the lowest cost or based on the greatest effectiveness A common tool for comparisons of alternatives is a scatter plot of effectiveness versus cost

Notional Cost-Effectiveness Analysis Display of Results

RtctQiet lndluttupprWldltwtf~~~ Altllmcncoa-awmiddot-liMyenW~Wttbullbull(laquo~middot e5or4 MINIIf(lf clllllllbullotl of rntAIIt- stoclulkMOdbull) tlllaquoltw bUtIGWIIct

1 100 ---------+ AIU - i ~Alt5

80~n ----1 _ I ~ tj _ 1] 53-+ quesUOnbhow bull bull ~~ yen

- much I$~ bullqh 80 middotbullyen _~ - ---middot--middot- u ~-

0 i w~i ~ 0

bull~ 0 2 4 8 10 14

Lifo ~kCost (t4tt Ptu t nt Vamplue fY0$81

Select image for enlargement

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Long Description

Notional Cost-Effectiveness Analysis Display of Results This shows figure 3337F1 Sample Scatter Plot of Effectiveness versus Cost from the Defense Acquisition Guidebook There is a graph with an x-axis representing Life Cycle Cost (Net Present Value FY08 $B) Values range from 0 to 14 in increments of 2 The y-axis is labeled as Effectiveness MOE (eg tons cargo delivered percent enemy targets destroyed) Values range from 0 to 100 in increments of 20 There are 6 alternatives plotted Alt 1 is plotted at (5 20) Alt 2 is plotted at approximately (75 55) Alt 3 is plotted at approximately (65 35) Alt 4 is plotted at approximately (12 79) Alt 5 is plotted at approximately (105 77) Alt 6 is plotted at approximately (82 79) There is a dotted horizontal line plotted at approximately 32 indicating that this is the Threshold for Effectiveness MOE Alt 1 is located below the threshold Alt 3 Alt 2 and Alt 6 provide increasing Effectiveness MOE Alt 6 Alt 5 and Alt 4 provide approximately the same Effectiveness MOE There is a dotted box drawn around Alt 3 Alt 2 and Alt 6 with the following question posed For these Alts question is how much is enough There is a dotted box drawn around Alt 6 Alt 5 and Alt 4 with the following comment made Alt 6 is more cost-effective than 5 or 4 at least as effective but at lower cost There is a note regarding the dotted boxes Rectangles indicate the upper and lower bounds of sensitivity analyses (or bounds for distribution of results from stochastic models)


The Support Challenge for Evolutionary Programs

A schedule time dimension is considered in the AoA especially for evolutionary programs An evolutionary approach has important implications for product support capabilities The support concept must be aligned to and evolve with the materiel solution

Contingency plans for extending the support of some delivered capabilities may need to address schedule delays in capabili ty materiel solution evolutions The results of the AoA provide input for the TDS that begins to define the technology roadmap

Path 1

Capability

To

Aetompllsh

Mission Current

Copobli1es Slctlon of Pbull th Oepends on

bull Ut(Jt ncy of He~bull bull Avbull llbull blllty of Fundt bull Tchnology Maturity bull AffortUbUity

Time


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Long Description

This graphic shows Figure 3321F1 Establishment of an Evolutionary Acquisition Strategy from the Defense Acquisition Guidebook It depicts the role of the AoA during the Materiel Solution Analysis phase in developing the Technology Development Strategy (TDS) as part of an Evolutionary Acquisition strategy There is a graph with an x-axis of Time and a y-axis of Capability to Accomplish Mission Near the intersection of the axes is a circle labeled ldquoCurrent Capabilitiesrdquo Two paths emanate from the Current Capabilities Path 1 and Path 2 Both paths lead to a circle in the upper right quadrant labeled as ldquoEnd-state solution Cost Performance Schedulerdquo Both paths lead to the end state through two interim circles Path 1rsquos circles occur earlier in time and at a higher capability to accomplish the mission than Path 2rsquos circles The selection of the path depends on the urgency of needs availability of funds technology maturity and affordability


System Operational Effectiveness ( SOE )

The SOE concept involves the Technicalinterdependent relationships among ~ Performance ~

bull Technical Performanc e shymeeting the warfighters functional capability ProcessSupportabi l i tyrequirements EfficiencySOE

bull Supportability - reliability - - shymaintainability and support features ( ie operational suitability features that cut ~ Life Cycle Cos t ~ across reliability maintainability and the supply chain )

bull Pro c ess Efficiency - system operation maintenance servicing and producibility

bull Life Cycle Cost - life cycle cost and total cost of ownership of the system

The PMs goal is to maximize the total operational effectiveness of the weapon system This model helps to evaluate trade- offs

During the Materiel Solution Analysis phase the LCL should influence designing for support I n later acquisition phases the LCL will support the design

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Popup Text

Life Cycle Cost

Life Cycle Cost (LCC) The total cost to the government of acquisition and ownership of a system over its useful life It includes the cost of development acquisition operations and support (to include manpower) and where applicable disposal For defense systems LCC is also called Total Ownership Cost (TOC)

Total Cost Of Ownership

Total Ownership Cost (TOC) A concept designed to determine the true cost of design development ownership and support of DoD weapons systems At the DoD level TOC is comprised of the costs to research develop acquire own operate and dispose of defense systems other equipment and real property the costs to recruit retain separate and otherwise support military and civilian personnel and all other costs of the business operations of the DoD At the individual program level TOC is synonymous with the Life Cycle Cost (LCC) of the system

Long Description

The graphic includes four boxes in a circular pattern connected by double-headed arrows The four boxes have the following text Technical Performance Supportability Process Efficiency and Life Cycle Cost The acronym SOE (representing System Operational Effectiveness) is in the center of the four boxes The graphic depicts the interdependent relationship of the concepts in the four boxes and the fact that they combine to form the larger concept of SOE


System Operationlll Effectiveness (SOE) Cont

Technical Performe~nce Designed- in functions Technicalcapabilities result in system performance Functions

Performancerefer to the desired mission abilities the system should be capable of executing in the operational environment This includes high- level functions such as intercept weapons delivery electronic jamming surveillance etc down to the lowest subsystem Designlevel supporting functions ( eg process signal)

EffectivenessCapabilities re fer to the various desired performance attributes and measures such as maximum speed range altitude accuracy (eg circular error probable) down to the lowest subsystem level (eg frequencies) Each of these must be prioritized up--abili_fc-5- port-_~ and traded off to achieve an acceptable balance in the design process

Supportability Supportability includes design factors of the system (i e reliability maintainability and support features) and its product support package

Design Effectiveness Design Effectiveness refers to the balance between the key design features of technical performance and supportability Performance and supportability must be considered together during system design accounting for sys tems anticipated operational maintenance and support concepts

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Process Efficiency

Achieving process efficiency requires early and on -going focus on the elements of logistics support According to the Supportability Guide process efficiency can be improved by

bull Application of optimization methods to reduce necessary capital investment within the system support infrastructure eg spares optimization and personnel allocation optimization

bull Application of continuous process improvement re- engineering and control to enhance efficiency of the logistics process

bull Application of process improvement- oriented technologies eg asset visibili ty and tracking technologies e- commerce and supply chain management failure diagnostics and prognostics and multi -media technologies for documentation and training

bull Development of innovative concepts such as condition -based maintenance and enterprise integration

bull Development of innovative contractual and management structures such as Performance Based Logistics

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Mission Effectiveness

Mission Effectiveness is critical because it reflects the Warfighters ability to accomplish the mission ( including the number of systems sorties required to accomplish the mission ) and directly impacts their workload It reflects the balance achieved between the design and the process efficiencies used to operate and support the system including the product support package and the supply chain When mission effectiveness is balanced against life c ycle cost affordable SOE is achieved

Technical Performance

Design Effectiveness bullI

-----~ iJ_____ ( Supportability) Eff~~~~ess

----~ ( Life Cycle Cost)

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Long Description

Design effectiveness and process efficiency feeding into Mission Effectiveness Then Mission Effectiveness and Life Cycle Cost combine to make Affordable SOE


Knowledge Review

Which of the choices below enable Design Effectiveness

life Cycle Cost and Mission Effectiveness

~ Supportability and Technical Performance

Mission Effec tiveness and Process Efficiency

Technical Performance and Process Efficiency

Check Answer

Supportability a nd Technical Perform a nce contributes to and enables Design Effectiveness

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Timing of SOE

The best opportunity for the LCL to influence future system availability a nd affect SOE is during pre-acquisition At this early stage the LCL identifies how system reliabili ty maintainability and supportability can be increased and logistics footprint can be decreased The LCL provides information to ensure that program capability requiremen ts documentation balances capabili ty li fe cycle cost and availabili t y

As stated earlier the Affordable SOE concept involves trade-offs between technical performance supportability process efficienc y and life cycle cost Therefore the LCL needs to understand the int errelationshiPs between the b asic SOE elements and the cause-and-effect of design decisions made during the Materiel Solution Analysis phase and future system operations and support For example certain design decisions to increase performance could create logistics process inefficiencies that would make the program unaffordable

System Design

logiStiC$ OperationsProcesslttS

Malntelltlnce ProdudbilityProcesses

Reliability

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Affordable SOE Interrelationships

Below is a pictorial display of the complex interrelationships of the basic elements of Affordable SOE Achieving the optimal balance across these complex relationships requires proactive coordinated involvement of organizations and individuals from the requirements acquisition logistics and user communities along with industry Consequently because of the complexity and overlapping interrelationships full stakeholder participation is required in activities related to achieving affordable mission effectiveness

Long Description

A geometric representation of the complex interrelationships of the basic elements of Affordable SOE The graphic has ten points labeled System Design Support Infrastructure Operations Producibility Support Features Reliability Maintainability Maintenance Processes Logistics Processes and Product Support Package There are lines drawn through the graphic that link all of these points to each other On top of the graphic is a box with the words ldquoLife Cycle CostTotal Ownership Costrdquo inside


Market Resear ch

The evaluation of product support cap abilities must include an assessment of commercial technologies products and services Thus LCls must participate in market research

Market research is a primary means of determining the availability and suitability of commercial items and the extent to which the interfaces for these items have broad market acceptance standards development organization support and stability

Market research supports the ac quisition planning and decision process by supplying technical and business information about commercial technology and industrial capabilities Federal Acquisition Regulations IFARl Part 10 requires the acquisition strategy t o include the results of completed market research and plans for fut ure market research

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Market Research as an LCL Tool

Why is market research valuable to the LCL

bull When commercial products are feasible alternatives for meeting defense capabili ty needs market research is needed to define and assess feasible support alternatives The existing capabilities and practices for supporting the commercial product( s) may provide a commercial support alternative that needs to be assessed

bull In some cases a commercial capabili ty is similar to defense capabilities such as electronics propulsion and aviation Commercial support capabilities and practices may provide feasible support alternatives for similar defense capabilities

bull Commercial services could provide elements of performance-based logistics to meet defense support requirements

bull Other ongoing DoD programs may also provide excellent sources of information regarding the application of commercial products and practices

bull Commercial equivalents of some support functional capabilities may be available such as spares management product knowledge-based information systems prognostics and diagnostics management etc

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Commercial Benefits to Do D

Commercial support technologies products and services can provide many benefits for DoD

bull If a commercial product support capabili ty can be used to meet DoD requirements the broader business base of both commercial and defense customers can provide lower costs through shared logistics infrastructure costs ( ie spares warehousing engineering information systems test and support equipment etc) and may also provide the benefits of continuous improvement and or technology refreshments depending upon the nature of the business deal DoD can arrange

bull If a commercial product support practice with relevance to DoD requirements can be identified and assessed the understanding of the costs and risks of such a practice to defense product support alternatives can be valuable While the practice may be new and innovative to DoD the commercial sector may have already determined its feasibility and effectiveness

bull If the commercial sector has established support organizations to provide support services for various product support functions either integrated in terms of delivery or guarantee of product availability or segmented in terms of managing spares technical information etc DoD can benefit from either leveraging similar service requirements or applying the commercial service model to defense requirements

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Aspects of Market Research

The LCL needs to understand how to conduct market research

Market research is a term that represents a continuous process for gathering data and information on product characteristics suppliers capabilities and the business practices that surround both T wo primary phases of market research are

1 Market surveillance is the broad and continuous process of staying abreast of common industry trends business practices and emerging technologies that are available in the commercial sector Acquisition personnel performing market surveillance are not looking to fill any specific need but are attempting to determine if commercial capabilities exist that may meet defense needs

2 Market inv estigatio n is aimed at satisfying a specific need Market investigation has a narrow focus and a specific time frame I ts purpose is to determine with a high degree of confidence whether or not commercial technology items or services can satisfy the requirement Once a requirement has been established by the Initial Capabilities Document ( l CD) a market investigation can be used to gather data on specific items appearing to meet the military need

For more information you can download the SD-5 (Market Research Gathering I nformation About Commercial Products and Services ) document

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Knowledge Review

Which of the following represents a continuous process for gathering data and infonnation on product ch aracteristics suppliers capabilities a nd the business practices that surround both

~ Market Research

U Commercial Bene fits

SOE Timing

System Effectiveness

Check Answer

Market Research represen ts a continuous process for gathering da ta and information on product characteristics suppliers capabili t ies and the business practices that surround both

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Market Surveillance Sources

Data sources or techniques for performing market surveillance include

bull Subscribing to and reading trade journals

bull Maintaining an active membership with professional societies

bull Personal contac ts with other DoD components federal agencies and private indus try to include attending other defense program o ffice meetings where commercial produc ts and practices are being used to meet defense requirements

bull Communication with the user community

bull Industry representatives at industry shows conferences or symposiums

bull On-line (Internet ) automated databases to include both defense and commercial sources Many of the Services have lessons learned datab ases that may provide useful insights

bull The OSD office on indus trial base policy provides various industrial base assessments that may be useful in certain instances

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Market Investigation Approach

The market investigation approach can be characterized in six major steps all of which contribute to the form fit and function of market research Select the links below to review each step

1 Summarize market surveillance

2 Identi fy sources

3 Survey many[ac turers support providers

4 Check re(erences

5 Evalua te candida tes

6 Document results

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Summarize Market Surveillance

Step 1 Review and summarize what the team has already learned from market surveillance activities This helps the team prepare to investigate specific areas of concern or fill information gaps within what is normally a limited time for performing the investigation

Identify Sources

Step 2 Survey of literature and other available information about potential candidate items that seem to meet the basic requirements of the user Information sources are developed from on going market surveillance advertisements in the Federal Business Opportunities as ldquoSources Soughtrdquo or ldquoRequest for Informationrdquo and advertising in trade publications

Survey Manufacturers Support Providers

Step 3 If the identification of sources finds promising items the next part of the process takes place Detailed questionnaires can be sent out to pull in more specific data on candidate products or services Teams may go out to industry provider sites and commercial user sites to view the products or services Candidate products may ultimately be leased or purchased for some system specific testing A sample of the available item may then be used or examined by potential military field users The survey of manufacturers is also a critical step for logistics as it can provide useful data on potential logistics requirements Some of the general types of information collected from manufacturers may include General performance specifications Supplier capability Market acceptability criteria Supportability issues Available test data and References for current customers

Check References

Step 4 This step is to determine whether actual performance satisfies current customers The goal is to verify if a product (or service) performs as described during the previous steps of the market investigation This should also include a review of past performance and product quality from reliable

sources like government databases consumer protection organizations or user groups Commercial airlines trucking or shipping fleets are just a few examples of commercial users who may be able to provide source data on commercial product acceptance and quality of vendor items

Evaluate Candidates

Step 5 The purpose of this step is to use the information gathered to determine if a commercial and or NDI acquisition of a product or service is feasible This consideration should include an assessment of risk as well as technical performance characteristics of candidate items The outcome of the market investigation should determine if (a) One or more items meet the requirements (b) One or more candidate items can be modified to meet the requirements (c) One or more potential candidatersquos items can meet the need if certain requirements are relaxed (d) One or more candidatersquos items can be modified to meet a more relaxed set of requirements (e) A Commercial and or NDI purchase is feasible

Document Results

Step 6 Document Results This documentation effort provides a historical record of the research effort and evidence of proper application to the acquisition It may also serve in the future as additional data for another research teams efforts on similar products or services It is may also used by the contracting office to help determine commercial terms and conditions and to tailor contract clauses


Comme rcial Feasibility

Commercial Feasibility assesses the feasibility of using a commercial product or service to meet defense capabili ty requirements and can be addressed by asking two questions

1 Will the product or service effectively satisfy the users mission requirement

2 Will it function and can it be supported in the users intended environment

The commercial item or service must be supportable in the anticipated mission environment The LCL must address two issues to determine whether the item or service qualifies for a commercial acquisition strategy

The Firs t approach compares the potential military mission profile to the current commercial user profile The differences provide a measure of risk that must be considered

The Second approach addresses supportability planning The LCL must determine whether the existing commercial support infrastructure is adequate to satisfy user supportability objectives or a new military unique support infrastructure is required

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Popup Text

First Approach

If operational practices and procedures and maintenance requirements and tasks are fairly similar under both profiles the logistician can predict with a fair degree of certainty that the equipment is supportable in the military environment Thus support items such as training simulators parts manuals nomenclature identification and associated usage rates technical publications for the equipment and any ancillary support or test equipment could transition into the defense userrsquos intended environment with little difficulty If a gap exists between the commercial and military profiles for support issues the risk must be identified and managed by the LCL If only a marginal correspondence exists between the two profiles the logistician may pursue a logistics concept tailored to the defense profile This may include the acquisition of the necessary technical data and information associated with any high-risk areas For example an issue such as initial and long term training certification can prove fatal to any deployment if ignored or poorly managed particularly if the equipment places heavy demand upon human integration with the equipment for successful operation Going commercial acquisition implies rapid deployment The logistician cannot begin addressing high risk support issues soon enough in the acquisition process

Second Approach

For example if publications development for a similar commodity item would be thirty-six months then interim contractor support would be required for at least as long as a contract option This gross planning factor early on allows for the in-house development by the Government (or through separate contract) if the commercially available technical publications prove to be not usable for the military program If the commercial publication is unusable then organic maintenance may be delayed until a new publication is written - hence the option for an interim contract support period until the new publication is available


Summarizing the LCLs Role

The LCLs role in market research is to assist in collecting and reviewing the available data collected and determine if any of the surveyed commercial products and or services can meet defense supportability requirements

Commercial products and or services may require tailoring to meet defense requirements especially in terms of ensuring that support capabilities can reach the battlefield and that logistics information will be accessible and integrated into battlefield command control communications and intelligence and joint logistics plans

Many commercial support practices may be applicable to and integrated with overall defense product support concepts and strategies Gathering information to better understand the intricacies of developing and implementing innovative commercial practice may be very valuable when evaluating product support alternatives Reviewing other commercial practices may also prove to be very beneficial given the increased emphasis on joint operations

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Long Description

Based on the results of the commercial product and practice assessments and any requisite demonstrations the LCL needs to identify and investigate any technology strategy andor acquisition strategy changes that would be beneficial to the life cycle support aspects of the program


Knowledge Review

Which step of the market investigation approach includes a survey of literature and other available information about potential candidate items that seem to meet the basic requirements of the user

Step 1 Summarize market surveillance

~ Step 2 Identify sources

Step 3 Survey manufacturers support providers

Step 4 Check references

Check Answer

Step 2 Identify sources includes a survey of literature and other available information about potential candidate items that seem to meet the basic requirements of the user

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Management Processes Summary

You have completed Management Processes and should now be able to

bull Identify the LCLs role in the development of the Analysis of Alternatives ( AoA)

bull Identify the LCLs role in Affordable System Operational Effectiveness ( SOE)



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LOG200 Intermediate Acquisition Logistics lesson 24 middot Evaluate Product Support Capabilities - Management Process RESOURCES 1 PRINT 1 HELP

lesson Completion

You have completed the content for this lesson

To continue selec t another lesson from the Table o f Contents on the left

If you have closed or hidden the Table of Contents click the Show TOC button at the top in the Atlas navigation bar

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Objectives

After finishing Management Processes you will be able to

bull Identify the LCLs role in the development of Analysis of Alternatives (AoA)

bull Identify the LCLs role in Affordable System Operational Effectiveness (SOE)



This lesson presents you with the LCLs role in the management process associated with evaluating product support capabilities

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lesson Completion




I Poge36of36

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lesson Completion




I Poge36of36

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log200 intermediate acquisition logistics lesson 2.4 - …cbafaculty.org/dau/intermediate...

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